5 Companies Boosting Workers’ Retirement Benefits

Cash
Photo by Dean Drobot / Shutterstock.com

It seems as if corporations are showing their gratitude for the passage of the federal tax code overhaul last month by being more generous to their employees.

In many cases, the generosity is short-lived. Companies ranging from Bank of America to Home Depot have announced since the new tax law’s passage that they would hand out bonuses.

A handful of companies thought longer-term, though, boosting the amounts they contribute to workers’ 401(k) accounts, AARP reports. For example:

  • Aflac is increasing its match from 50 percent to 100 percent, which is capped at 4 percent of an employee’s salary. It’s also making a one-time contribution of $500 to employee 401(k) accounts.
  • Nationwide is increasing the cap on its 50 percent match, from the first 6 percent of employee contributions to the first 7 percent.
  • SunTrust Banks will make a one-time additional contribution to employee 401(k) accounts in an amount equal to 1 percent of an employee’s 2017 salary and incentive pay.
  • Visa is increasing the cap on its 200 percent match, from 3 percent of an employee’s pay to 5 percent.
  • Western Alliance Bancorporation is increasing its match from 50 percent to 75 percent, which is capped at 6 percent of an employee’s salary.

What the tax overhaul did for corporations

The vast majority of folks stand to see their 2018 tax bill — the one you’ll pay next year — drop as a result of the tax overhaul. This is in large part due to reduced tax rates and increased standard deductions for individuals, as we detail in “3 Big Ways the Tax Overhaul Will Affect Your 2018 Tax Return.”

The new tax law’s benefits for individuals pale in comparison, however, to their benefits for corporations.

For example, the changes to individual tax rates are temporary. The overhaul contains language stating that those changes apply only for “a taxable year beginning after December 31, 2017, and before January 1, 2026.” In other words, the new individual tax rates expire after tax year 2025, at which time the rates will revert back to the pre-overhaul tax rates for individuals.

The overhaul contains no such language for the new 21 percent corporate tax rate. It’s a permanent change to the federal tax code. Lawmakers would have to pass new legislation if they wanted to change it.

How do you feel about corporations handing out bonuses and increasing contributions to employee retirement accounts? Share your thoughts below or on Facebook.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
Big-Ticket Things You Should Never Buy
Big-Ticket Things You Should Never Buy

In this week’s podcast: Are you wasting big money on these common purchases?

10 Foods That Can Keep for Years
10 Foods That Can Keep for Years

These are some of the longest-lasting groceries you can buy.

10 Ways Retailers Trick You Into Spending More
10 Ways Retailers Trick You Into Spending More

Think you’re a savvy shopper? Find out how retailers persuade you to dig more deeply into your wallet.

5 Products You Should Never Buy Generic
5 Products You Should Never Buy Generic

Generic products are a great way to save money, but sometimes the brand-name version is clearly superior.

12 Products to Keep Your Car Clean and Organized
12 Products to Keep Your Car Clean and Organized

These items will help put your vehicular mess to rest — and each is available for less than $20 on Amazon.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
9 Things You’ll Never See at Costco Again
9 Things You’ll Never See at Costco Again

The warehouse store offers an enormous selection, but these products aren’t coming back.

11 Things Retirees Should Always Buy at Costco
11 Things Retirees Should Always Buy at Costco

This leader in bulk shopping is a great place to find discounts in the fixed-income years.

Over 50? The CDC Says You Need These 4 Vaccines
Over 50? The CDC Says You Need These 4 Vaccines

Fall is the time to schedule vaccines that can keep you healthy — and even save your life.

11 Household Items That Go Bad — or Become Dangerous
11 Household Items That Go Bad — or Become Dangerous

When you get the impulse to stockpile these everyday items, pay close attention to their expiration dates.

Why Cloth Masks May Increase Your Coronavirus Risk
Why Cloth Masks May Increase Your Coronavirus Risk

A new study finds that wearing a cloth mask can backfire if you don’t clean it properly.

8 Things You Can Get for Free at Pharmacies
8 Things You Can Get for Free at Pharmacies

In this age of higher-priced drugs and complex health care systems, a trip to the pharmacy can spark worry. Freebies sure do help.

The 15 Worst States for Retirees in 2020
The 15 Worst States for Retirees in 2020

Based on dozens of metrics tied to affordability, quality of life and health care, these are not ideal places to spend retirement.

7 Ways to Boost Your Credit Score Fast
7 Ways to Boost Your Credit Score Fast

Your financial security might soon depend upon the strength of your credit score.

These Are the 4 Best Medicare Advantage Plans for 2020
These Are the 4 Best Medicare Advantage Plans for 2020

Medicare Advantage customers themselves rate these plans highest.

The 10 Most Commonly Stolen Vehicles in America
The 10 Most Commonly Stolen Vehicles in America

A new model parks atop the list of vehicles that thieves love to pilfer.

This Is the Cheapest Place to Buy a Used Car
This Is the Cheapest Place to Buy a Used Car

Looking for a good deal on a set of wheels? This should be your first stop.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

These jobs pay more than the typical job in the U.S. — and no bachelor’s degree is required.

5 Ways to Get Amazon Prime for Free
5 Ways to Get Amazon Prime for Free

Hesitant to drop $119 a year on an Amazon Prime membership? Here’s how to get it for free.

5 Keys to Making Your Car Last for 200,000 Miles
5 Keys to Making Your Car Last for 200,000 Miles

Pushing your car to 200,000 miles — and beyond — can save you piles of cash. Here’s how to get there.

26 States That Do Not Tax Social Security Income
26 States That Do Not Tax Social Security Income

These states won’t tax any of your Social Security income — and in some cases, other types of retirement income.

10 Reasons Why You Should Actually Retire at 62
10 Reasons Why You Should Actually Retire at 62

If you can, here are several good reasons to retire earlier than we’re told to.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

7 Surprising Features That Boost Your Home Value
7 Surprising Features That Boost Your Home Value

You can add value to your home without hiring a contractor to do expensive renovations.

5 Things That Make Life More Meaningful for Retirees
5 Things That Make Life More Meaningful for Retirees

Retirees agree: These are the things that give them purpose and fulfillment in their golden years.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.